S3 E10 : MOST COMMON TRADING MISTAKES AND HOW TO AVOID THEM

“Before you make money, learn how not to lose it.”

😓 Imagine This:

You’re excited.
You just learned about trading.
You open an account. You buy a stock.
It rises a bit — you feel like a genius.
You buy more. And more.
Then suddenly…
💥 The market crashes.
You lose your money.
You panic.
You quit.

This is what happens to many beginners.
Not because trading is bad — but because they made common mistakes.

Let’s learn how to avoid those traps.

🧨 MISTAKE #1: Overtrading

You take too many trades in a day.
You feel like you're doing something… but it's just noise.

🎯 Fix: Trade less, but trade with purpose.
Quality > Quantity.

🔥 MISTAKE #2: No Stop Loss

You buy a stock, it starts falling.
You hold it.
You hope.
You pray.
It keeps falling.

🎯 Fix: Always set a Stop Loss — a price where you’ll exit if the trade goes wrong.
It’s like wearing a helmet.

🎲 MISTAKE #3: Treating Trading Like Gambling

You buy random stocks based on tips, YouTube, or gut feeling.
No analysis, no logic. Just hope.

🎯 Fix: Learn. Practice. Test your strategy.
Use paper trading first. Be a trader, not a gambler.

🤯 MISTAKE #4: Revenge Trading

You lose one trade, get angry, and take another trade to “recover”.
But you’re not thinking — you’re reacting.

🎯 Fix: After a loss, pause.
Breathe. Review what went wrong.
Never trade when emotional.

🧠 MISTAKE #5: No Trading Journal

You repeat the same mistake again and again — because you’re not tracking.

🎯 Fix: Maintain a trading journal.
Track your trades, learn from them.

 

😰 MISTAKE #6: Fear of Missing Out (FOMO)

You see a stock rising.
Everyone is buying.
You jump in…
And then it crashes.

🎯 Fix: Don’t chase.
Let the opportunity come to you.
There will always be another trade.

🤑 MISTAKE #7: Greed

You’re in profit.
You want more.
You don’t book.
Then the profit turns into loss.

🎯 Fix: Set a target. Stick to it.
Book profits wisely.

 

🚫 MISTAKE #8: Blindly Following Others

Just because someone said “Buy this” doesn’t mean you should.
They might exit — you’ll be stuck.

🎯 Fix: Do your own research.
Even if you follow someone, understand why they’re doing it.

🚀 MISTAKE #9: Trading Without a Plan

You buy and sell randomly — no goal, no system.

🎯 Fix: Make a trading plan:

  1. When to enter

  2. When to exit

  3. What to risk

  4. Why you’re trading

Stick to the plan.

📉 MISTAKE #10: Not Accepting Losses

Losses are part of trading.
If you can’t accept small losses, you’ll face big ones.

🎯 Fix: Take losses like a professional.
Focus on the next trade, not the last one.

💡 Final Thought:

Smart trading = avoiding stupid mistakes.
You don’t need to be perfect.
You just need to avoid common blunders.
That’s 80% of success.

 

✅ Quick Recap:

  1. Don’t overtrade

  2. Always use stop loss

  3. Don’t trade with emotions

  4. Don’t follow others blindly

  5. Use a journal

  6. Avoid greed & FOMO

  7. Have a trading plan

  8. Accept losses